DraftKings CEO: ‘We Can Adjust To Be Profitable In New York’
“We want to be global one day.”
DraftKings CEO Jason Robbins recently spoke at a gaming summit and had some very interesting things to say on a few different topics.
New York just recently legalized sports betting in the state, and DraftKings was one of the nine sportsbook operators that received a license to operate in the state. However, the state has put a huge tax on the revenue that sportsbooks can take in. At 51%, the New York tax is far higher than any other state’s. Many question whether or not sportsbooks can turn a profit with such high taxes, but Robins did not seem concerned about that whatsoever.
“Australia is a 43% tax, and it’s one of the most profitable countries for a lot of the operators there,” Robins said. “I think that high tax rates certainly favor scale-operators because the fixed costs are buried in a lot more top-line revenue. I also think that you adjust, so we’ll run [fewer] promotions. We’ll spend less long-term on marketing.
Jason Robins said that at the start, marketing costs in New York will be high, like most states. DraftKings is operating under the assumption that the lifetime value of its customer will start to drop roughly four years after the state goes live. That means that marketing costs will go down for the company years after they first enter.
Robins also talked about DraftKings’ future in the global market. The company had talks previously to purchase sports betting giant Entain, but those talks shut down in October. He says that for the time being the company may have to focus on their market here in the U.S, with global aspirations taking a backseat.
“We want to be global one day,” Jason Robins said. “I think we would have to feel like the asset we’re getting is kind of on autopilot, and we don’t have to focus much attention, because we really do need to focus all of our attention on winning in the U.S. and Canada.”
Reice Shipley is a daily news writer and social media assistant for BSM. He is a graduate of Ithaca University, contributor to the Syracuse Mets, and aspires to work behind the scenes in sports media in the future. He can be found on Twitter @Reice_Shipley18 or you may reach him by email at RShipley@ithaca.edu.
Dan Le Batard: ‘Does Sports Media Care if Interviews Are Done Well?’
“An exclusive interview with Ja Morant, who hasn’t talked to anybody after his controversy, is going to get eyeballs, so it doesn’t matter how good it actually is.”
Mike Greenberg had praise for Jalen Rose this week. He said that no one but his ESPN colleague could have handled the interview with Ja Morant that has been airing on the network. Dan Le Batard has the exact opposite opinion of what he saw.
“What I saw was soft and didn’t seem to serve anybody except ESPN,” Le Batard said on his Thursday show. “This seems to be a lot of people around the economy of basketball and Ja Morant orchestrating an interview so Ja Morant can move onto the next stage of his branding.”
Whereas Greenberg thought the shared experience of an NBA career made Rose more likely to get answers from Morant, Le Batard said it created a problem. He accused Rose of letting Morant get away with using “talking points” in lieu of answering any actual questions about the string of erratic behavior and disturbing incidents the Memphis Grizzlies star has been involved with.
It wasn’t the only interview that Dan Le Batard pointed to. He noted that Pat McAfee’s interview with Aaron Rodgers may have drawn an audience of nearly half a million, but very little substance was offered.
“Does anybody in the audience, in sports fandom, or even, at this point, in sports media companies, care in a real and legitimate way whether the interview is done well or not?”
He added that the standard has changed for these interviews because the goal has changed. They are no longer about journalism as much as they are about branding, particularly in the case of ESPN’s exclusive interview with Ja Morant.
“An exclusive interview with Ja Morant, who hasn’t talked to anybody after his controversy, is going to get eyeballs, so it doesn’t matter how good it actually is,” Le Batard concluded. “All you need, if you’re the media partner, is please get me the famous guy to sit down.”
Jomboy, Aaron Boone Partner For Weekly Podcast Appearance
“I thought it was a really interesting opportunity, and a cool idea. These guys have been innovators in this business and they’ve built a massive, young following.”
It isn’t unusual for a professional sports team to partner with a local radio station for weekly interviews with team personnel. Even though Jomboy Media is a digital outlet, it didn’t stop the company from inking a deal to have Yankees manager Aaron Boone on one of its signature podcasts.
In a move announced Thursday, Jomboy Media has signed a deal for Boone to appear on its popular Talkin’ Yanks podcast — hosted by founder Jimmy O’Brien and Jake Storiale — once a week throughout the baseball season.
“I thought it was a really interesting opportunity, and a cool idea. These guys have been innovators in this business and they’ve built a massive, young following,” Boone told The New York Post. “I think Jimmy and Jake are both really good guys. And they’re passionate about what they do, and they love the Yankees. And, sometimes they’re a little misguided and it’s my chance to set the record straight every now and then.”
Previously, Boone had a weekly spot on 98.7 ESPN New York’s The Michael Kay Show, which reportedly paid him six figures.
“It’s going to be really fun and it kind of goes with the changing landscape of media,” O’Brien said. “The fact that two fans can create a show and in five years get to the point where they get to ask questions to the manager of the Yankees and bring whatever insight we can get out of that to our audience — it is pretty wild, a little surreal.”
Sports Media Reacts to Aaron Rodgers Telling Adam Schefter ‘Lose My Number’
“Here are some of the best responses from Schefter’s sports media colleagues to the tweet.”
Quarterback Aaron Rodgers appeared on The Pat McAfee Show on Wednesday and revealed that if he gets his way, his time with the Green Bay Packers is done. He intends to play for the New York Jets in 2023.
Rodgers told McAfee that the hang-up lies with Green Bay, which is trying to determine the appropriate compensation for trading for a first-ballot Hall of Famer.
Rodgers also revealed that he had an interaction with ESPN NFL insider Adam Schefter. Schefter, who was obviously digging as much as he could to get the scoop on what was going on with Rodgers’ future, texted Rodgers trying to confirm the information he had.
“I didn’t respond to Dianna Russini I think her name is,” Rodgers said. “But I would say the same thing that I told Schefty. Lose my number. Nice try.”
Upon hearing Rodgers’ account, Schefter followed up with a screenshot of Rodgers responding exactly how he said, and that sent social media into a whirlwind.
Here are some of the best responses from Schefter’s sports media colleagues to the tweet:
Jordan Bondurant is a features reporter for Barrett Sports Media. He’s a multimedia journalist and communicator who works at the Virginia State Corporation Commission in Richmond. Jordan also contributes occasional coverage of the Washington Capitals for the blog NoVa Caps. His prior media experiences include working for the Richmond Times-Dispatch, the Danville Register & Bee, Virginia Lawyers Weekly, WRIC-TV 8News and Audacy Richmond. He can be reached by email at firstname.lastname@example.org or follow him on Twitter @J__Bondurant.
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